Cement prices in Telangana set to increase by Rs 25 per bag
Cement, coal, steel and urea prices are likely to go up with the Railways Minister proposing freight hike up to 10 per cent for various commodities (Representational Image; Photo: DC/file)
Hyderabad: Cement firms have given a new twist to the ongoing controversy over pricing. The firms, which recently agreed to cut prices by Rs 25 per bag under pressure from the Telangana government and builders, are all set to increase prices by Rs 25 per bag for common consumers to cover up for the loss.
The firms claim that the price reduction was only for builders and not for individual consumers. Builders purchase 55 per cent of the cement sold in the state, while 45 per cent of the purchases are made by common consumers, who will now have to pay extra. The price for common consumers will now be Rs 330 as against Rs 285 to be collected from builders. The new prices are expected to come into force from August.
Builders had completely stopped purchasing cement for three weeks in Telangana and Andhra Pradesh to protest the steep increase in cement prices from Rs 200 to Rs 310 from June. The TS government intervened and invited builders and cement firms for talks, following which the manufacturers agreed to cut the price by Rs 25 per bag, two days ago.
Common consumers are now angry with the government and cement firms for leaving them in the lurch. They asked that when builders who take up big projects, only to earn profits, are given the advantage of price reduction, how can common consumers be left out.
There are 22 cement manufacturing firms in both Telangana and Andhra Pradesh which produce 80 million tonnes of cement per year. Of the total production, only half is being sold in both states; the other half is exported to other states. In Telangana and AP, nearly 19 lakh tonnes of cement is sold per month.
“The steep rise in cement prices has affected not only builders, but even common consumers. Most of the common consumers will be from the middle class who dream of building an independent house or renovating an existing one. Several consumers postponed their construction plans on account of steep rise in cement prices. The government, which remained a mute spectator, reacted only after builders stopped purchase of cement and halted construction works. The cement firms, which agreed to cut prices by Rs 25, are now saying that it is applicable only for builders and contractors and not common consumers. How far is this justified,” asked Pruthvi Raj, an employee who halted construction work of his independent house in Barkatpura.
Consumers demanded that the government convince cement firms to pass on the benefit of price reduction to them as well.
( Source : dc correspondent )
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